News & Analysis as of

Commercial Bankruptcy Distressed Debt

Goodwin

Incentivizing Executives to Stay Through a Chapter 11 Asset Sale (Part I): Key Employee Retention Programs for Insiders

Goodwin on

The best — and sometimes only — option for a financially troubled company to avoid a piecemeal liquidation may be to seek an acquirer for itself or its assets. While a distressed company may prefer an out-of-court sale...more

Troutman Pepper Locke

How Can a Consignor Perfect Consignment Rights Before a Bankruptcy Is Filed? - Creditor’s Rights Toolkit

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Consignments may be governed by either common law or Article 9 of the Uniform Commercial Code, the latter of which requires the consignor to comply with various procedures in order to perfect its security interest in the...more

Goulston & Storrs PC

Rethinking Liability Management in Club Deals and Direct Lending: Lessons from the Fifth Circuit’s Serta Ruling and Beyond

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On December 31, 2024, the Fifth Circuit Court of Appeals (the “Court”) struck down the controversial 2020 “uptier transaction” executed by Serta Simmons Bedding (“Serta”). The Serta case and several other state court and...more

Holland & Knight LLP

Distressed Investing in Energy: Strategies and Risks in a Nutshell

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From a U.S. bankruptcy perspective, distressed debt investing is often based on two fundamental principles in the bankruptcy system: 1) a secured creditor is entitled to the value of its collateral in a given bankruptcy case...more

Goodwin

Stalking Horse Bidders: What Bid Protections Can You Expect in a Section 363 Sale?

Goodwin on

Conducting an asset sale through a bankruptcy auction — a Section 363 sale — is an effective and common M&A tool for a distressed company. In anticipation of a 363 sale, a Chapter 11 debtor typically tries before its...more

Strafford

[Webinar] Distressed Financing: Avoiding Pitfalls in Planning and Execution - Agency Resignation and Transfer, Rebalancing of...

Strafford on

This CLE course will examine some of the more common pitfalls in loan restructurings that are frequently unidentified or ignored until they appear at or after closing. The panel discussion will include agency resignations,...more

Troutman Pepper Locke

What Is a Stalking Horse Bidder in a Section 363 Sale and Why Might I Want to Be One? - Creditor's Rights Toolkit

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Serving as the stalking horse bidder in a Section 363 sale can provide a buyer with financial and legal protections, as well as better position the buyer to ultimately acquire the debtor’s assets. This article addresses the...more

K&L Gates LLP

Luxembourg Modernises Its Insolvency Legislation

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On 19 July 2023, the parliament of the Grand Duchy of Luxembourg (Luxembourg) passed bill no. 6539A into law (the New Insolvency Law), marking a significant milestone in the movement to modernise and enhance the...more

Epiq

Rising Interest Rates and Restructuring Predictions

Epiq on

In an effort to combat inflation, the Federal Reserve (Fed) is raising interest rates. Inflation is a decrease in the purchasing power of our money which causes prices to increase in goods and services over time.  The...more

Epiq

Where to Next? Travel and Bankruptcy Predictions Remain Foggy

Epiq on

There is no argument that throughout the pandemic, travel has been one of the hardest hit industries. Domestic and international restrictions, capacity limitations, cancelled events, remote operations, illness, and fear...more

Pillsbury - Gravel2Gavel Construction & Real...

Is a By-the-Hour Motel a Single Asset Real Estate for Chapter 11 Purposes?

Single asset real estate (SARE) is a unique classification under the Bankruptcy Code with implications for both debtors and lenders. SARE classification is apparent for a property such as a shopping center, apartment complex...more

Lowenstein Sandler LLP

2022 Bankruptcy & Restructuring Outlook

Lowenstein Sandler LLP on

Brent Weisenberg, senior counsel in the firm’s Bankruptcy & Restructuring Department, provides his outlook on what’s to come in 2022 in the bankruptcy and restructuring world. Weisenberg focuses on the long-suffering retail...more

BCLP

The bankruptcy Pegasus: stalking horse agreements in aviation

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The bankruptcy Pegasus: stalking horse agreements in aviation - The Covid-19 pandemic has had a significant impact on the aviation industry, with regular international travel being halted for prolonged periods since March...more

Amundsen Davis LLC

[Webinar] Preparing Your Business for Sale: A Checklist for Owners - November 12th, 10:00 am - 11:00 am CT

Amundsen Davis LLC on

Preparing to sell your business can be an overwhelming endeavor. A checklist of considerations for mergers and acquisitions (M&A) transactions can ease the burden. Join Bill Hackney and Carrie Keller on Thursday, November...more

Miller Canfield

Practice Pointer: Words Matter

Miller Canfield on

In prior practice pointers, we discussed how a statute of frauds provides protection for financial institutions and how a prenegotiation agreement also can provide protection. Do these mean that you can write or say whatever...more

Greenberg Glusker LLP

Lessons for Health, Beauty & Wellness Companies [Part 3]: When to Consider Acquiring a Distressed Company

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In this short, three-part video series, Greenberg Glusker Partners Andrew Apfelberg and Brian Davidoff discuss important financial considerations for health, beauty and wellness companies in the wake of a pandemic. Part three...more

White & Case LLP

Cracks show in retail as debt burden begins to bite

White & Case LLP on

Retailers faced a difficult financing market before COVID-19 appeared, but lockdowns have made the situation even tougher. High yield and leveraged loan values for retailers in North America and Western and Southern Europe...more

Robinson & Cole LLP

[Webinar] Distressed Company Investing in the COVID-19 Environment - May 12th, 1:00 pm ET

Robinson & Cole LLP on

Investing in distressed entities or their debt or equity can represent attractive opportunities, but not without certain unique challenges, particularly in the post-COVID-19 era. Often these transactions occur out of court as...more

WilmerHale

COVID-19: Rethinking Chapter 11 as an Asset Sale Strategy Distressed Asset Sales in the Crisis

WilmerHale on

When a company faces financial distress and seeks to sell its assets, both the seller and the buyer may prefer to implement the transaction through a Section 363 sale in a Chapter 11 bankruptcy case of the seller. A Chapter...more

White and Williams LLP

Distressed Debt and Workout Agreements During the COVID-19 Pandemic

Creditors facing a cascade of distressed credit facilities resulting from the economic fall-out from the COVID-19 pandemic will need experienced counsel at all stages of workouts, from preliminary discussions through the...more

Woods Rogers

Bankruptcy Considerations And Relief For Distressed Businesses Amidst COVID-19

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In addition to recent programs from the U.S. Small Business Administration (“SBA”), such as low interest disaster loans, small businesses may benefit from amendments to the U.S. Bankruptcy Code, which became effective on...more

A&O Shearman

International Considerations – Buying Assets from Distressed U.S. Companies

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The oil price plunge starting on March 6 seems like a sucker-punch to the oil and gas industry after the price decreases and market unrest as a result of COVID-19. However, for those with capital to spend, including...more

A&O Shearman

Five Things to Think About – Buying Assets from Distressed Companies

A&O Shearman on

The oil plunge starting on March 6 seems like a sucker-punch to the oil and gas industry after the price decreases and market unrest as a result of COVID-19. However, for those with capital to spend, it will lead to...more

Foley & Lardner LLP

A Look Ahead: Forecasting the Top Legal Issues Facing In-House Counsel in 2020

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In this ever-changing economy, businesses are facing new, unique legal questions and challenges now more than ever. On November 21, 2019, Vanessa Miller and Nick Ellis of Foley & Lardner LLP, along with The Association of...more

Hogan Lovells

A further step taken by Ukraine to simplify out of court loan workouts

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On 25 September 2019, the Ukrainian Parliament brought into force law No. 112-IX (the “Law“). The purpose of the Law is to correct deficiencies in existing legislation and further promote out-of-court financial restructurings...more

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